Rents rising at fastest rate since 2008

Rent have risen at rates not seen since 2008, according to Zoopla, as demand for rental properties continues to outstrip dwindling supply. Rents were up 4.6% in the year to September, the highest rise in 13 years, after climbing 3% in the last quarter. Outside London, where the market has lagged, rental growth reached a 14-year high of 6%. The jump will mostly affect the 4.4m households who live in the private rented sector, accounting for 19% of all households. Figures from the online property site revealed that supply is running at 43% below the five-year average and pushing up the cost of rent. The rising costs will hit potential first time buyers, who are also facing increased bills and living costs. Inflation hit 4.2% in October, according to the latest figures from the Office for National Statistics. Tighter regulations and a less generous tax system for buy-to-let owners have been blamed for the lack of rental supply because landlords have quit the market thanks to the extra administrative and financial burden.

The Sunday Times